Seres (HKEX: 9927) has announced it expects to post a substantial net loss for the first half of 2026, reversing last year’s profit. The company cites higher raw material costs and asset writedowns as key factors behind the downturn, with its Aito subsidiary also swinging to a loss.
Seres Reports Shift from Profit to Loss
Seres disclosed that it anticipates a net loss attributable to shareholders of $220.9M (~AUD 317.8M) to $265.1M (~AUD 381.4M) for the first half of 2026. This marks a sharp contrast to the $433M (~AUD 622.9M) profit reported for the same period last year.
Excluding non-recurring items, the expected net loss is between $324M (~AUD 466.1M) and $368.2M (~AUD 529.7M), compared to a profit of $363.8M (~AUD 523.3M) a year earlier.
Rising Costs and Asset Adjustments Impact Results
Seres attributed the losses to increased production costs, driven by higher prices for key raw materials such as memory chips, industrial metals, and lithium carbonate.
The company also adjusted the book value of certain assets, citing limited adaptability due to technological changes and model upgrades.
Aito Subsidiary Swings to Loss
Aito, the core subsidiary jointly operated with Huawei, moved from profit to loss in the second quarter of 2026. According to Seres, Aito’s net loss attributable to shareholders is projected at $279.8M (~AUD 402.6M) to $316.6M (~AUD 455.5M) for the second quarter, and $154.6M (~AUD 222.5M) to $191.5M (~AUD 275.4M) for the first half.
Seres itself posted a net profit of $111M (~AUD 159.8M) in the first quarter, but the overall net loss for the second quarter is estimated at $331.4M (~AUD 476.7M) to $375.6M (~AUD 540.3M).
Sales Performance and New Ventures
Seres Group’s cumulative sales for the first half of 2026 reached 196,580 vehicles, a decrease of about 1% year-on-year. New energy vehicle (NEV) sales totaled 178,777 units, up 3.87% from the previous year.
However, June 2026 saw a notable decline, with group sales at 36,194 vehicles (down 28.1% year-on-year) and NEV sales at 33,669 units (down 26.9%).
Seres stated it maintains ample cash reserves and a strong balance-sheet structure.
In June, Seres-backed Saidou Technology introduced a new AI car brand, Aiva, with its first mass-produced model, the ME7, expected to debut within 2026. Saidou Technology’s largest shareholder is Chongqing state-backed Shaci Zhiyuan, with CATL (HKEX: 3750) also participating in the investment. Seres has already separated Saidou Technology’s business from its consolidated statements through an earlier asset restructuring.
Why this matters
Seres’s projected losses for the first half of 2026 highlight the challenges faced by automakers amid rising material costs and rapid technological change. The company’s financial performance, especially the swing to loss at its Aito subsidiary, underscores the volatility in the sector.
The launch of new ventures like Aiva and the restructuring of business units reflect Seres’s efforts to adapt to shifting market conditions and reduce reliance on a single brand.
What this means for buyers
Buyers considering Seres or Aito vehicles should be aware of the company’s recent financial challenges and sales fluctuations. While Seres maintains strong cash reserves, the evolving product lineup and new brand launches may influence future offerings and support.
Those interested in the upcoming Aiva ME7 should watch for further announcements regarding its debut and availability later in 2026.
Key Specs
- Expected H1 2026 Net Loss: $220.9M (~AUD 317.8M) to $265.1M (~AUD 381.4M)
- H1 2025 Net Profit: $433M (~AUD 622.9M)
- Expected H1 2026 Net Loss (Excl. Non-Recurring Items): $324M (~AUD 466.1M) to $368.2M (~AUD 529.7M)
- Aito H1 2026 Net Loss: $154.6M (~AUD 222.5M) to $191.5M (~AUD 275.4M)
- Seres Group H1 2026 Sales: 196,580 vehicles
- Seres Group H1 2026 NEV Sales: 178,777 units
- Seres Group June 2026 Sales: 36,194 vehicles
- Seres Group June 2026 NEV Sales: 33,669 units
Source
Images sourced from: carscoops.com, dubicars.com, global-seres.com.sg
